USD

The U.S. dollar has been one of the biggest benefactors of safe-haven buying. This was initiated by the Fed’s talk of less stimulus for the U.S. economy. Traders are in the mood to go short on risky assets and put their funds into assets such as the USD which are deemed less risky. The GBP/USD pair is lower today by 0.16% at $1.5208. The AUD/USD forex pair has slumped 0.2% to $1.0236 this Thursday morning.

EUR

The euro is lower versus the dollar and the pound today. This is despite the European single currency surging versus the British currency earlier on. The EUR/USD pair is down by 0.73% at $1.3187. The EUR/GBP has slumped 0.56% to 86.72 pence. The euro has just not reacted well to the weak global economic sentiment. It is a well-known fact that the EUR often slumps when traders are unwilling to take risks. This is exactly what we are seeing this Wednesday morning.

JPY

The yen is in very high demand today, as traders have decided to sell assets which they feel carry with them too many risks. This has enabled the yen to made inroads into the dollar, pound and other widely traded currencies today. The Asian stock market decline was the big boost the yen has got this morning. The gains for the JPY may be built on if there is a U.S. stock market slump later on.

Asian equities dived earlier today on the fears that the U.S. may cut back on economic stimulus. In addition, China is expected to increase property curbs.

The MSCI Asia Pacific Index fell 1.5% to 133.21. The Hang Seng China Enterprises Index slipped 2.2%. China’s Shanghai Composite Index dived 3%. Hong Kong’s Hang Seng Index lost 1.7%. Japan’s Nikkei 225 Stock Average lost 1.4%. South Korea’s Kospi Index slipped 0.5%. Taiwan’s Taiex index fell 0.9%.
BHP fell 3.8% to A$37.17. Belle International Holdings dived 17% to HK$15.28. Origin Energy slumped 8.5% to A$11.33.

There has been much less risk appetite since yesterday afternoon. It seems that the bearishness we saw for U.S. stocks on Wednesday have had a strong impact on Asian stocks today. The result of the bearishness I Asia equities may drive European shares lower in the coming hours. Therefore, traders need to be ready for this possibility.

Crude Oil

Crude oil futures are lower today by $1.14 at $94.08. Traders have decided to ditch the commodity today in response to Fed comments that there may be a pullback in economic stimulus.

This also led crude prices to fall yesterday. Another factor which is putting downward pressure on the commodity today is the much stronger dollar.

Traders have decided to go bearish on crude as it has been overvalued lately to a certain extent. It is true that there are certain factors backing the commodity.

However, this has not been enough to boost the energy. There needs to be more facts on the ground showing an improving global economy.

It is obviously that weaker global stock markets will only drive crude oil lower. Prices may slide further during U.S. trading if there is a lack of positive economic data.

USD/JPY

The USD/JPY forex pair is lower this morning by 0.32% at 93.28 yen. Forex traders are or confident in the yen today, as it has been highly undervalued as of late. In addition, there is very little risk appetite, which has le traders to buy into safe-haven assets. This is why investors may continue buying into the yen this Thursday.